News Releases

Guardian Group of Funds Ltd. (GGOF) has launched GGOF Global Absolute Return Fund, a new fund that will focus on preservation of capital, while investing in attractively valued equity securities with no geographic or capitalization restrictions.

The GGOF Global Absolute Return Fund is particularly well-suited for conservative investors who want global equity exposure. The Fund will employ a range of investment strategies that strive to deliver predictable, consistent and positive investment returns with a primary focus on preservation of capital and a secondary focus on growth of capital. 

“During the bear market of 2000 – 2002, which saw the S&P/TSX Composite Index lose 35 per cent, many investors came to define risk as the loss of principal,” said Gavin Graham, Chief Investment Officer, Guardian Group of Funds. “For these and most conservative investors, absolute returns are a more meaningful performance yardstick than relative performance. 

“While stock markets have enjoyed a substantial bull market for the last four years, this has led to stretched valuations and a willingness to pursue returns from more volatile and less transparent markets, while ignoring the risks associated with such investments. This makes it a particularly appropriate time for GGOF to launch a fund focused on delivering absolute positive returns,” added Graham.

Absolute return investing, also known as deep value investing, is a strategy that employs the basic tenets of value investing and is characterised by significantly reduced volatility and relatively stable and predictable returns. The Fund's emphasis on capital preservation will be achieved through buying securities with a significant discount to their intrinsic value. In addition, GGOF will leverage its experience in structuring innovative products that offer less volatile means of accessing traditionally volatile asset classes.

“Returns from absolute return investing have historically been non-correlated with returns from conventional asset classes, which means that absolute return products like the GGOF Global Absolute Return Fund can be useful in achieving portfolio diversification,” said Graham.

The Fund will hold a relatively concentrated portfolio of approximately 40 holdings, primarily equities, with no limitation to investing in other asset classes. The portfolio advisor will invest globally without geographic restriction, although developed markets will be favoured.

GGOF Global Absolute Return Fund will be managed by Matthew Haynes, Director, Global Equities at Lazard Asset Management ( Canada) Ltd. Haynes is a seasoned value investor who has consistently delivered exceptional results using an absolute return approach. Lazard, which manages over $89 billion in assets, has been managing assets for over 150 years and currently manages or co-manages seven GGOF funds.  Prior to joining Lazard Asset Management, Haynes was co-manager of the Mutual Beacon Fund from 2001-04.

GGOF provides investors with a full product line of 33 mutual funds, diversified by asset class, geographic region and investment style. GGOF, with $6.0 billion of mutual fund assets under management at July 31, 2006, offers its funds exclusively through financial intermediaries.

GGOF is a member of BMO Financial Group and part of the organization's Private Client Group. BMO's Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $272.8 billion as at April 30, 2006.

Sales commissions, service fees, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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